SUPPLY CHAIN PLANNING AND PERFORMANCE OF WATER

BOTTLING COMPANIES IN NAIROBI CITY COUNTY, KENYA

PAULINE MUMBI KAMAU

A RESEARCH PROPOSAL PRESENTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION,

SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI

NOVEMBER 2015

vi

DECLARATION

This research proposal is my original work and has not been presented to any other

institution. No section of this project may be reproduced or transmitted in any form or

by any means, without permission from the author or that of the University of Nairobi.

Signature…………………………… Date………………………………..

Pauline Mumbi Kamau

D61/64698/2013

This research proposal has been submitted for examination with my approval as the

university supervisor.

Signature………………………… Date…………………………………

Mr. Tom Kongere,

Department of Management Science

School of Business

University of Nairobi

vii

DEDICATION

I dedicate this project to my dear husband Baraka and loving parents Mr. & Mrs. Kamau

for their prayers, love and support during my studies. Words alone cannot express my

appreciation; I will forever be indebted to you. God bless you! To my daughter Adia

Krista I thank the Almighty for the joy you have brought to my life. You have made me

focus

A special dedication also goes to my supervisor Mr. Tom Kongere for his guidance and

positive criticism, for his corrections and much needed guidance that was much needed in

the undertaking of this project. Thank you very much, God bless you!

viii

ACKNOWLEDGEMENT

As I undertake this research paper, I deeply acknowledge the immense support and

guidance I received from my supervisors, Tom Kongere and Michael Chirchir. Your

efforts were worthy the task and I have no better words to express my appreciation. I also

wish to acknowledge all my lecturers for their support, encouragement and guidance

during my studies at the University of Nairobi.

I would also want to thank my respondents in various water bottling firms in Nairobi,

Kenya for taking their time to fill in the questionnaires. Your support was greatly

appreciated. May God bless you!

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TABLE OF CONTENTS

DECLARATION.............................................................................................................. vi

DEDICATION................................................................................................................. vii

ACKNOWLEDGEMENT ............................................................................................. viii

ABBREVIATIONS AND ACRONYMS ...................................................................... xiv

CHAPTER ONE: INTRODUCTION ............................................................................. 1

1.1 Background of the Study .............................................................................................. 1

1.1.1 Supply Chain Planning ........................................................................................... 2

1.1.2 Supply Chain Performance..................................................................................... 2

1.1.3 Supply Chain Planning and Supply Chain Performance ........................................ 3

1.1.4 Water Bottling Companies in Kenya ..................................................................... 4

1.2 Statement of the Problem .............................................................................................. 5

1.3 Objectives of the Study ................................................................................................. 6

1.4 Value of the Study ........................................................................................................ 7

CHAPTER TWO: LITERATURE REVIEW ................................................................ 8

2.1 Introduction ................................................................................................................... 8

2.2 Theoretical Perspectives ............................................................................................... 8

2.2.1 Theory of Constraints ............................................................................................. 8

2.2.1 Knowledge-Based View ........................................................................................ 9

2.3 Supply Chain Planning Practices .................................................................................. 9

2.3.1 Integration with Suppliers .................................................................................... 10

2.3.2 Control of the Supply Chain planning ................................................................. 10

2.3.3 Demand Management Process ............................................................................. 11

2.3.4 Collaborative Supply Chain Planning .................................................................. 11

2.3.5 Supply Chain Decisions ....................................................................................... 12

2.3.6 Strategic Distribution Planning ............................................................................ 12

2.3.7 Strategic Warehouse Planning and Design .......................................................... 13

2.4 Challenges of Supply Chain Planning ........................................................................ 14

2.5 Empirical Review........................................................................................................ 15

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2.6 Summary of the Literature Review and Knowledge Gaps ......................................... 15

2.7 Conceptual Framework ............................................................................................... 16

CHAPTER THREE: RESEARCH METHODOLOGY ............................................. 18

3.1 Introduction ................................................................................................................. 18

3.2 Research Design.......................................................................................................... 18

3.3 Study Population ......................................................................................................... 18

3.4 Sampling ..................................................................................................................... 18

3.5 Data Collection ........................................................................................................... 19

3.6 Data Analysis .............................................................................................................. 19

CHAPTER FOUR: DATA ANAYSIS, RESULTS AND DISCUSSION ................... 21

4.1 Introduction ................................................................................................................. 21

4.2 Response Rate ............................................................................................................. 21

4.3 General information .................................................................................................... 22

4.3.1 Duration the organization has been operation ...................................................... 22

4.3.2 Position of the respondent .................................................................................... 23

4.3.3 Length of service in the organization ................................................................... 24

4.4 Reliability analysis ...................................................................................................... 24

4.4.1 Cronbach’s Coefficient Alpha .............................................................................. 24

4.5 Supply chain planning practices ................................................................................. 25

4.6 Challenges of implementing supply chain planning practices .................................... 30

4.7 Supply chain planning practices and supply chain performance ................................ 32

4.8 Pearson Correlation Analysis ...................................................................................... 37

4.9 Regression Analysis .................................................................................................... 38

CHAPTER FIVE : SUMMARY OF THE STUDY, CONCLUSION AND

RECOMMENDATIONS ................................................................................................ 43

5.1 Introduction ................................................................................................................. 43

5.2 Summary of Findings and Recommendations ............................................................ 43

5.3 Conclusion .................................................................................................................. 44

5.4 Recommendations ....................................................................................................... 44

5.5 Suggestions for Further Study .................................................................................... 45

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5.6 Limitations of the Study.............................................................................................. 45

REFERENCES ................................................................................................................ 46

APPENDICES ................................................................................................................. 50

APPENDIX I: Research Questionnaire ............................................................... 50

APPENDIX II: List Of Bottling Companies In Kenya ...................................... 55

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LIST OF FIGURES

Figure 2.1 Conceptual framework .................................................................................... 16

Figure 4.1: Response Rate ................................................................................................ 22

Figure 4.2: Duration the organization has been operation ................................................ 23

Figure 4.3: Position of the respondent .............................................................................. 23

Figure 4.4 Length of Service in the Organization............................................................. 24

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LIST OF TABLES

Table 4.1: Reliability Statistics ......................................................................................... 25

Table 4.2: Supply chain planning practices ...................................................................... 28

Table 4.3: Challenges of implementing supply chain planning practices ........................ 32

Table 4.4: Supply chain planning practices and supply chain performance ..................... 36

Table 4.5: Pearson Correlation Coefficients Matrix ......................................................... 38

Table 4.6: Regression Model Summary............................................................................ 39

Table 4.7: Analysis of variance ........................................................................................ 41

Table 4.8: Coefficients ...................................................................................................... 41

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ABBREVIATIONS AND ACRONYMS

ANADs- Adult non-Alcoholic Drinks

KARI- Kenya Agricultural Research Institute

KPI- Key Performance Indicators

SCE- Supply Chain Execution

SCOR- Supply Chain Operations Reference

WIP- Work in Progress

1

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study

Globalization of business and the increasingly competitive pressures have driven many

organizations to adopt supply chain planning to minimize the supply chain costs. Lee and

Kim (2002) contend that supply chain planning is considered an important element in

countering complexities of supply chain management in meeting customer needs. This is

because, according to Robert (2004) a well-established supply chain framework acts a

guide in overall supply chain strategic planning process for its individual supply chain

functions such as transportation, inventory and logistics.

Kerbachea and MacGregor (2004) note that supply chain plans should be monitored

regularly to help organizational supply chain planners make changes when the need arises

in a cost-effective manner. This is because the needs of customers keep on changing and

the organization should ensure that there is a proper match between the demand and

supply of goods and services in a cost effective manner. Hokey and Zhou (2002) explain

that supply chain planning can often be extremely difficult to manage across enterprise

and functional areas within an organization. Functional area expectations, priorities, and

preferences can often differ when looking at supply chain planning activities; however,

cost effectiveness, process efficiency, and cycle time are common considerations.

Hokey and Zhou (2002) highlighted that in order to deal with global market complexities,

most organizations are shifting from a “push” to a “pull” business model. Push business

models are premised upon planning, developing and marketing products pushed into the

market place. Pull business models relies upon forecasted and actual signals to generate

production plans, material plans and supply requirements. Beamon (1998) contends that

the desire to become demand-driven is expanding the market for sophisticated and agile

solutions in the supply chain.

2

1.1.1 Supply Chain Planning

According to Lockamy and McCormack (2004) supply chain planning is the component

of supply chain management (SCM) involved with predicting future requirements to

balance supply and demand. Supply chain planning provides visibility to the demand and

allows organizations to determine the optimal way to fulfill that demand based on

available enterprise-wide supply and production resources.

Hokey and Zhou (2002) explained that supply chain planning allows the users to drill into

demand details to see how supporting production and supply plans were created as well

as to make any changes necessary to meet the demand or achieve business objectives

more effectively. Supply chain planning ensures that organizations optimize their

production and procurement activities on an enterprise-wide basis.

Perona (2001) indicated that SCM is sometimes broken down into the stages of planning,

execution and shipping. Supply chain planning and supply chain execution (SCE) are the

two main categories of SCM software. Hokey and Zhou (2002) averred that supply chain

planning products may include supply chain modeling, and design, distribution and

supply network planning. SCE software applications track the physical status of goods,

the management of materials, and financial information involving all supply chain

partners.

1.1.2 Supply Chain Performance

Stewart (2005) defines supply chain performance as the ability of the supply chain to

meet customer needs through product accessibility and responsiveness to ensure on time

delivery. It involves a continuous process that requires both an analytical performance

measurement system, and a mechanism to initiate steps for realizing key performance

indicators. Gunasekaran and McGaughey (2004) argue that the process of achieving key

performance indicators are referred to as "KPI accomplishment" for example carrying

cost inventory, inventory turnover, order tracking and back order rate. It connects

planning, and execution, and builds steps for realization of performance goals.

3

Supply chain performance can be measured in the context of the following supply chain

activities and processes: plan, source, make and deliver. These activities are considered at

various levels of management that are strategic, tactical, and operational levels

(Gunasekaran et al., 2004). Supply Chain Operations Reference (SCOR) model has been

developed to facilitate construction of a systematic supply chain performance

measurement and improvement tool. It is often recognized as a systematic approach for

identifying, evaluating and monitoring supply chain performance.

1.1.3 Supply Chain Planning and Supply Chain Performance

Andrew and Robert (2004) explored on the importance of integration on supply chain

planning. It was found that integration enhanced sharing of information between the

suppliers and the organization and thus boosts supply chain planning. With integration,

the organization can easily involve its suppliers in decision making processes. This helps

in improving the speed of decision making and thus leading to improved supply chain

performance. Lee and Kim (2002, p170) stated that “A well planned and designed supply

chain system is able to balance constraints and measure tradeoffs between cost, service,

quality and time. Top management should understand how planning tools and

applications should be deployed in total context of the business process”.

Lockamy and McCormack (2004) indicated that a well-managed supply chain system

should accommodate changes in the external environment in order to work towards the

goals of the organization. The management of the organization should align the functions

and the activities of the supply chain in a manner that suits customer needs and

expectations. In their study on the link between supply chain planning and performance,

Scott, Mason, Ribera and Afarris (2003) concluded that successful operation of supply

chain system depends on its ability to plan and re-plan as well as ability to understand

when plan need not be changed. Planning has to be comprehensive and timely, based on

accurate and up-to-date information and data. Proper planning helps to save both

transport and warehousing costs since there is a prior arrangement between the supplier

and the firm this leads to supply chain performance.

4

1.1.4 Water Bottling Companies in Kenya

Bottling water began in the United Kingdom with the first water bottling at the Holly

Well in 1622. The first commercially distributed water in America was bottled and sold

by Jackson’s Spa in Boston in 1767. Today, bottled water is a part of everyday life for

millions of people living in the world. Per capita consumption in the United States now

tops fifteen gallons per year with sales over $5 billion in 2002 (Chapelle, 2005).

Chapelle further points out that the historical popularity of bottled water is attributed to

an associated image and status. It is further associated to a healthy lifestyle, convenience

and more consistent taste. Some people are simply content to follow the trend. The

popularity of bottled mineral waters has quickly led to a market for bottled water. It is the

third most popular commercial beverage in the world after alcoholic and soft drinks.

Most bottled water containers are made from recyclable plastic (Mackey et al., 2005).

In Kenya, water bottling companies gained popularity in the late 90’s (Members

Directory, 2008). These companies were established to serve the changing customer

demands on service delivery, distribution as well as globalization (Kilasi, 2013). The

functions of these bottling companies include mixing drinking ingredients and filling up

cans and bottles with water (Juma and Mathooko, 2013). The bottler then distributes the

final product to wholesale sellers in a geographic area. Large companies like the Coca-

Cola Company sell their product to bottlers such as the Coca-Cola Bottling Co., who then

bottles and distributes it (Bett, 1995).

There are 186 water bottling companies that are licensed to work and operate in Nairobi,

Kenya (See Appendix II). The water bottling companies play a key role in the Kenyan

economy. They generate revenue to the government through taxes; create employment to

the local people in the product manufacturing, packaging and distribution to the retail

outlets (Obaga, Omido and Ogutu, 2013).

5

However, according to MEMBERS’ DIRECTORY (2008) these bottling companies are

faced with numerous challenges including on-time delivery of goods and services, lack of

modern technology, stiff competition and lack of a well-coordinated supply chain system.

This might negatively impact on supply chain performance. Consumers expect that

retailers will provide the right match in terms of the right product offering, quantities,

place, time and price (Oliver, 1993). Water bottling companies should therefore consider

implementing supply chain planning for improved supply chain performance.

1.2 Statement of the Problem

Andrew and Robert (2004) contend that supply chain planning capabilities enable firms

to allocate demand intelligently to the most appropriate production facility based on

lowest manufacturing cost or available resources including capacities and inventories,

transport costs, and lead time from facility to customer. This assists in saving time and

costs leading to improved supply chain performance. Kerbachea (2004) explained that

firms that embrace supply chain methodologies and discipline fostered by a framework-

based approach make themselves agile, and so are capable of effectively and rapidly

responding to ever-changing business conditions.

Bottling companies will be the focus of this study; this is because of the nature of their

supply chain functions especially mixing drinking ingredients and distribution of

products to the final consumer (Ijomba, 2010). This is a complex process that requires

supply chain planning to successfully deliberate on their functions.

Lockamy and McCormack (2004) carried out a study on supply chain planning and

performance of manufacturing firms. It was found that supply chain planning contributed

to efficiency in the supply chain. Lee and Kim (2002) carried out a study on the

effectiveness of supply chain planning of manufacturing firms in United Kingdom. The

study concluded that supply chain planning improved collaboration between supply chain

partners. This enhanced supply chain performance. Perona (2001) concluded that banks

used supply chain planning to integrate with their supply chain partners in Italy. Ijomba

6

(2010) conducted a study on the effects of integrated supply chain on the performance of

Nairobi Bottlers. The study found that integrated supply chain led to improved supply

chain performance.

Lisanza (2013) and Njoroge (2007) did studies on supply chain integration and

performance in Humanitarian organizations and EABL. It was concluded that there was a

significant positive relationship between SCM integration and performance in

humanitarian organizations and East African Breweries Limited. These studies focused

on supply chain integration and performance. The studies did not address the relationship

between supply chain planning and performance.

The study therefore seeks to bridge the gap in research by finding answers to the

following research questions: what are the supply chain planning practices used by water

bottling companies in Nairobi Kenya? And what is the relationship between supply chain

planning and supply chain performance of water bottling companies in Kenya?

1.3 Objectives of the Study

The general objective of this study was to determine the impact of supply chain planning

on supply chain performance of water bottling companies in Kenya. Therefore, specific

objectives were:

1. To determine supply chain planning practices used by water bottling companies in

Nairobi, Kenya

2. To determine the challenges facing implementation of supply chain planning

practices by bottling companies in Nairobi, Kenya

3. To establish the relationship between supply chain planning practices and supply

chain performance of bottling companies in Nairobi, Kenya

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1.4 Value of the Study

This study will be instrumental to the government and other policy makers. They may use

the findings of this study to set policies that create an enabling environment for firms to

practice and implement supply chain planning with the aim of optimizing their

production and procurement activities to boost performance through increased sales and

market share.

The study will serve as a point of reference to researchers and academicians interested in

this area of study and related disciplines. It will contribute to the existing body of

knowledge in terms of empirical and theoretical framework. The study findings and

conclusions could be useful for making inferences for further study.

The study will be useful to the beverage industries. They will learn the benefits of supply

chain planning in their supply chains, how to predict the future requirement of a firm by

matching their future requirements with supply and demand. This will provide visibility

into demand by allowing the firms to determine an optimal way to fulfill their customer

demands.

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CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

This part consisted of the supply chain planning practices, the challenges of supply chain

planning, the empirical review and the summary of the literature review and the

knowledge gap.

2.2 Theoretical Perspectives

This part discussed theories that were relevant to supply chain planning and performance.

The theories discussed in this study included: theory of constraints and knowledge based

–view theory.

2.2.1 Theory of Constraints

According to Boyd and Gupta (2004) this theory is a management paradigm that views

any manageable system as being limited in achieving more of its goals by a very small

number of constraints. Davies, Mabin and Balderstone (2005) argue that there is always

one of the constraints; this theory uses forecasting process to identify the constraint and

restructure the rest of the organization around it.

The underlying assumption about this theory is that organizations can be measured and

controlled by variations on three measures namely: throughput, operational expense and

inventory. Ehie and Sheu (2005) explain that inventory is all the money that the system

has invested in purchasing things which it intends to sell. Operational expense is all the

money the system spends in order to turn inventory into throughput. Throughput is the

rate at which the system generates money through sales. Before the goal itself can be

reached, necessary conditions must first be met.

Gupta (2004) argue that failure to forecast into the future may negatively impact on

organizational goals as a result of unidentified constraints. This theory is relevant to this

study since it enlightens the management of an organization on the need to prepare for

the future through supply chain planning (Davies, 2003). This is important because an

9

organization can be able to plan for its future demand. This will help to meet the growing

needs of customers and thus overcome stock out costs; prolonged lead time, reduced

holding costs leading to supply chain performance (Benton, 2007).

2.2.1 Knowledge-Based View

Knowledge-based view considers intangible resources of organizations as well. This

theory looks at various dimensions to the development of this view namely:

organizational learning, organizational capabilities and competencies. This theory

promotes sharing of knowledge for purposes of improving efficiency and value creation.

Ketchen and Hult (2007) emphasize that creation of value can only be achieved through

internal and external organizational supply chain collaboration.

Hult, Ketche and Slater (2004) applied the knowledge-based view to the information

process and knowledge development in organizational supply chain performance. They

could describe the substantial variance in cycle time of organizational supply chain

performance using knowledge-based view. This shows the relevance of sharing of

knowledge in achieving supply chain performance in an organization. This theory

demonstrates the importance of sharing knowledge during supply chain planning in an

organization. The organization should practice sharing of knowledge with its supply

chain partners. This enhances the speed of decision making and lowers communication

costs leading to improved supply chain performance.

2.3 Supply Chain Planning Practices

Chopra and Meindl (2007) defines supply chain planning as a process of gathering

information from buyers and suppliers to assist the organization to plan for its future

actions and satisfy the demand at a reduced cost. However, the length of the planning

horizon determines the degree of flexibility and the methods used to manage the plant.

The supply chain planning practices discussed in this study include: integration with

suppliers, control of supply chain planning, demand management process, collaborative

10

supply chain planning, supply chain decisions, strategic distribution planning and

strategic warehouse planning and design.

2.3.1 Integration with Suppliers

Ehie and Sheu (2005) posit that integration enables enhanced sharing of information from

buyers and suppliers. This helps the organization to plan its future actions and satisfy the

demand at a minimum cost. Integration with suppliers is part of the supply chain planning

whereby companies work with suppliers seeking mutual objectives, sharing ideas,

information, knowledge, risks, rewards and solutions to common problems. For Lambert

(2006), the term partnership is still the most descriptive term for closely integrated and

mutually beneficial relationships that enhances supply chain performance (Benton, 2007).

According to Baiman and Rajan (2002) what characterizes advanced integration between

buyers and suppliers is the presence of a collaborative relationship and respect for other

companies’ cultural and organizational differences. By gaining indirect benefits, buyer

and supplier may feel encouraged to interact which, in turn, enhances the planning

process and reinforces the benefits, creating a cycle of positive interaction in the chain.

This enables sharing of ideas thus improving supply chain performance (Bellmunt and

Torres, 2013).

2.3.2 Control of the Supply Chain planning

In order to make sound tactical and strategic decisions that impact profitability, decision

makers must have better control over the planning function. It’s precisely in the area of

forward decision making where companies can have the most impact on improving

business results. To achieve these benefits, however, firms must first invest in supply

chain planning education, systems and practices that deliver visibility into the future and

therefore empower decision makers (Benton, 2007).

According to Akkermans, Bogerd and Van Doremalen (2004) the planning activities and

decisions that management must make for supply chain function ranges from the

extremely long-run to the short run and then day to day activities. Further, the

11

characteristics of these activities and decisions range from those that require vast

resources and managerial time as measured by cost, required planning inputs, level of

risk and other attributes as well as those requiring relatively minimal time and resources.

2.3.3 Demand Management Process

Soldhi (2003) indicates that demand management process is a documented forecasting

process that uses history data to estimate the demand in future in order to plan for the

future using mathematical methods. It is concerned with balancing the customers’

requirements with the capabilities of the supply chain. This includes forecasting demand

and synchronizing it with production, procurement, and distribution capabilities. A good

demand management process can enable a company to be more proactive to anticipated

demand, and more reactive to unanticipated demand.

An important component of demand management is finding ways to reduce demand

variability and improve operational flexibility. Reducing demand variability aids in

consistent planning and reducing costs. Kaipia (2008) explains that increasing flexibility

helps the firm respond quickly to internal and external events. Most customer-driven

variability is unavoidable, but one of the goals of demand management is to eliminate

management practices that increase variability, and to introduce policies that foster

smooth demand patterns (Soldhi, 2003).

2.3.4 Collaborative Supply Chain Planning

According to Lee and Kim (2002) supply chain collaborative planning seeks to improve

supply chain planning process. Having the right product on the shelves will increase sales

and customer loyalty. Improved forecasting can reduce raw materials and finished goods

inventories leading to a smoother operational execution which reduces logistics costs and

improves asset utilization. This is realized not only within the organization but also to

other members of the supply chain.

12

With reference to Benton (2007) the conception and development of partnerships is

achieved through improved communication between potential supply chain partners. A

study by Baiman and Rajan (2002) on collaborative supply chain has identified critical

steps to achieve collaboration. This provides a roadmap that raises key issues about

planning collaboration in any supply chain. The first stage is planning. It entails two

critical steps: frond-end agreement and joint business plan. The next stage involves two

forecast-oriented steps: sales forecast collaboration and older forecast collaboration.

Baiman and Rajan (2002) indicate that the final stage involves replenishment. It

comprises one major step: order generation. In the collaborative planning, forecasting and

replenishment process, the planning phase is critical as partners develop collaboration

initiatives and terms (Oliva and Watson, 2011).

2.3.5 Supply Chain Decisions

This is a supply chain planning practice used by the top management of organizations in

order to effectively plan for their supply chains. Lockamy and McCormack (2004) put

forth that supply chain decisions are categorized in three broad categories: long-term,

medium-term and short-term. This depends on the objective that the organization seeks to

achieve while executing its supply chain functions and activities (Scott et al., 2003).

Oliva and Watson (2011) argue that the middle level managers maintain proper

coordination of activities between the organization and the warehouse. This helps in

reducing communication costs, inventory and transport costs leading to supply chain

performance. The departmental heads of supply chain makes day-to-day decisions

involving the operations of the organization. This kind of decisions focus on scheduling

workloads, maintenance of equipment and meeting immediate market demands.

2.3.6 Strategic Distribution Planning

Sodhi (2003) posit that strategic distribution planning includes the determination and

redesigning of the physical distribution structures between warehouses and outlets, the

flexibility and degree of a supplier's own outbound supply chain activities. Strategic

13

distribution planning creates structures for the transportation modes for direct links to

stores, warehouse‐to‐store deliveries and cross‐docking operations.

Often, retailers use a distribution mix depending on supplier location and product

characteristics. They use their warehouses for storage and picking, but sometimes they

additionally serve for cross‐docking (Lambert, 2006). Another important function of

strategic distribution planning is to regulate to what extent the retailer should handle the

outbound logistics, and how strategic partnerships with service providers are arranged.

This enables the firm to effectively integrate its functions and activities with its supply

chain providers and thus improve supply chain performance (Kaipia, 2008).

2.3.7 Strategic Warehouse Planning and Design

Lee and Kim (2002) indicated that warehousing includes all activities between inbound

logistics from suppliers and outbound logistics to outlets, especially picking

outlet‐specific orders. Strategic warehouse design governs the number, location, function

and types of warehouses. Determining the number of warehouses and location planning

requires a trade‐off decision between inbound transportation costs, fixed site costs,

inventory costs and outbound transportation costs leading to supply chain performance. It

establishes the total number and size of warehouses and selects the site (Oliva and

Watson, 2011).

Perona (2001) argues that increasing the number of warehouses reduces the outbound

transportation costs but increases the inbound transportation and inventory costs. The

function within the network is deciding whether to use central or regional warehouses.

The type determination means selecting technologies for serving the warehouses and

running picking processes for example technologies for frozen, chilled and ambient

products or materials handling technologies for order picking systems.

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2.4 Challenges of Supply Chain Planning

Baiman and Rajan (2002) put forth that the planning horizon for a typical business is a

rolling twelve month period. This time horizon is often considered a demand forecasting

problem. Since the forecast is used to drive the budget, distribution and production

planning processes. Benton (2007) argues that increasing the accuracy of the forecast is

fundamental to improving the stability of these plans that is distribution, inventory,

production and the overall return on investment from corporate resources.

With reference to Bellmunt and Torres (2013) lack of proper coordination of sales and

marketing functions with the supply chain initiatives of the organization on what should

be produced, and where it is needed is a challenge to most organizations. Lack of good

supply chain coordination can lead to frequent changes in production schedules,

expedited transfers and shipments in distribution, excessive stock outs, and erratic levels

of customer service and lack of visibility into the future demand.

Bellmunt and Torres (2013) further maintain that the other challenge is lack of a shared

knowledge about the supply chain planning function. This leads to inadequate decision

support systems and unavailable or inconsistent data due to lack of integration to the core

business systems. According to Kaipia (2008) most organizations lack adequate

knowledge regarding forecasting and planning techniques often, key decision makers

have little formal training in the areas of forecasting, inventory planning, production

planning, distribution planning or scheduling theory and processes. Many are simply

following past practices, which may be outdated and yield undesirable outcomes. Sodhi

(2003) argue that planners are often frustrated at the quality of the forecasts they receive

from their sales and marketing organizations. In most cases, they will override the

forecast and use their own judgment. While this can work better in individual

circumstances, it also means that marketing and planning are not working to a

coordinated plan. Forecasts at the item or location levels are often least reliable.

15

2.5 Empirical Review

Kaipia (2008) examined the effects of delivery speed on supply chain planning; a

descriptive survey was conducted in a sample of 45 commercial banks in Europe.

Primary data was collected using a semi structured questionnaire. A regression model

was adopted for data analysis to establish the relationship between the effects of delivery

speed on supply chain planning. It was concluded that supply chain planning was a key

component in achieving improved delivery speed.

Lee and Kim (2002) investigated on the influence of production distribution planning on

performance of manufacturing firms in UK. A causal study was conducted in a sample of

55 manufacturing firms. Both primary and secondary data was used; primary data was

collected using a semi-structured questionnaire while secondary data was gathered from

financial statements. A correlation analysis was done and the findings concluded that

there existed a positive correlation between production distributions planning on

performance of manufacturing firms.

Lockamy and McCormack (2004) carried out a study on supply chain planning and

performance of manufacturing firms. A cross sectional survey was carried out; primary

data was collected using a structured questionnaire. A regression model was used to show

whether there was any relationship between supply chain planning and performance of

manufacturing firms. The results of the analysis concluded that supply chain planning

contributed to efficiency in the supply chain.

2.6 Summary of the Literature Review and Knowledge Gaps

The empirical review shows that supply chain planning practices are an essential

component in making supply chain decision in an organization. Supply chain planning

enables an organization to match its demand and supply of goods and services to

customers. This enables an organization to achieve on time delivery of goods and

services, coordination of activities, improved decision making process and reduced

communication costs. Studies by Lockamy and McCormack (2004), Lee and Kim (2002)

16

and Lee and Kim (2002) have concluded that supply chain planning contributes to supply

chain performance of the firm in finance and manufacturing sectors. This study seeks to

address the question: what is the relationship between supply chain planning practices

and supply chain performance of bottling companies in Kenya?

2.7 Conceptual Framework

The study used a conceptual model below to explain the relationship between supply

chain planning practices and supply chain performance of bottling companies in Kenya.

Figure 2.1 Conceptual framework

Independent Variables Dependent Variable

Supply Chain Practices Supply Chain Performance

Source: (Author, 2015)

Integration with Suppliers

Demand Management

Process

Control of the Supply Chain

planning

Collaborative Supply Chain

Planning

Supply Chain Decisions

Increased customer

satisfaction

Reduced

communication costs

Improved decision

making

Improved demand

forecasting

Reduced Cycle time

Strategic Distribution

Planning

Strategic Warehouse and

Design

17

The figure 2.1 above depicted the conceptual argument for this study which showed the

relationship between supply chain planning and supply chain performance. Effective

implementation of supply chain planning practices (integration with suppliers, control of

supply chain planning, demand management process, collaborative supply chain

planning, supply chain decisions, strategic distribution planning and strategic warehouse

planning and design) is attributable to reduced communication costs, improved demand

forecasting, reduced cycle time and improved decision making. This leads to improved

supply chain performance.

18

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter described the steps, procedures and approaches used in executing this study.

It covered the research design, the study population, sampling, respondent selection, data

collection and analysis procedures.

3.2 Research Design

This study used a cross sectional survey and descriptive design. This design was

appropriate because it was helpful in establishing the nature of the current situation and

analyzing such situation and conditions. According to Kothari (2003) cross-sectional

studies are essential where the overall objective is to find out whether there is any

association between variables.

3.3 Study Population

The target population of this study consisted of all the 186 water bottling companies in

Nairobi, Kenya (See Appendix II). This is because it is where supply chain planning

practices were mostly applied due to the manner of consumption of drinking water.

3.4 Sampling

The sample size for this study included 19 respondents. This was arrived at through a

formula developed by Kelley and Maxwell (2003) as shown below: 0.101=Sample

Size/Total population (0.101*186) =19. This formula was derived from a series of

samples assuming non-zero probability. This method is considered appropriate when

using a descriptive survey research design and a correlation and regression model as

recommended by (Kelley and Maxwell, 2003). The 19 heads of supply chain or their

equivalents were selected for data collection. Simple random sampling was employed to

select the respondents.

19

3.5 Data Collection

The study used qualitative form of data collection techniques. Primary data was collected

by use of a semi structured questionnaire. According to cooper and Schindler (2003) a

questionnaire is useful when collecting large amounts of data from a large number of

people in a short period of time and in a relatively cost effective way. The data can easily

be quantified. It can be used to compare and contrast other research and may be used to

measure change.

The questionnaire was divided into four sections: part A contained questions on the

general profile of the respondents and the organization; section B contained questions on

the supply chain management practices used by water bottling companies in Kenya

Section C contained questions on the challenges facing bottling companies in Kenya on

the implementation of supply chain management practices. Section D contained questions

on the relationship between supply chain planning practices and supply chain

performance of water bottling companies in Kenya. Primary data was collected from the

heads of supply chain in the water bottling companies in Kenya, or their equivalents.

These respondents were deemed as key informants of the study because they were highly

involved in supply chain planning and therefore understand the challenges faced when

implementing these practices. The questionnaires was administered by a “drop and pick

later” method after five days at an agreed hour with the researcher.

3.6 Data Analysis

The data collected was analyzed using descriptive statistics to achieve the first and the

second objectives of the study. This involved measures of central tendency and

dispersion, mean and standard deviation. To achieve the third objective of this study, a

correlation and regression model was employed. The model consisted of seven

independent variables and a dependent variable: The independent variables were supply

chain planning practices while the dependent variable was supply chain performance.

Y = β0 + β1x1 + β 2X2 + β 3X3+ β 4X4+ β 5X5 + β 6X6 + β 7X7 +e

Y= Supply chain performance

20

X1= Integration with supplier

X 2=Demand management process

X 3= Control of the supply chain planning

X 4= Collaborative Supply Chain Planning

X 5= Supply Chain Decisions

X6= Strategic distribution planning

X7= Strategic Warehosue and Design

β 0 and X =Regression Constants

€= Error term.

The study used a linear regression model to show the relationship between supply chain

planning practices and supply chain performance of the organization.

Below is a summary of how data collected was analyzed in the table below:

Objectives Questionnaire Data Analysis

General Profile Section A Descriptive

Objective 1 Section B Descriptive

Objective 2 Section C Descriptive

Objective 3 Section D Regression

Source: (Author, 2015)

21

CHAPTER FOUR

DATA ANAYSIS, RESULTS AND DISCUSSION

4.1 Introduction

This chapter provides a summary of the data analysis, results of the study and the

discussion of the results of the study. The results were presented on the Supply Chain

Planning and Performance of Water Bottling Companies in Nairobi, Kenya. The study

was based on the following specific objectives: To determine supply chain planning

practices used by water bottling companies in Nairobi, Kenya; to determine the

challenges facing implementation of supply chain planning practices and to establish the

relationship between supply chain planning practices and supply chain performance of

bottling companies in Nairobi, Kenya.

4.2 Response Rate

The study targeted a sample size of 19 respondents from which 15 filled in and returned

the questionnaires making a response rate of 78.9%. This response rate was satisfactory

and representative to make conclusions for the study. According to Mugenda and

Mugenda (1999), a response rate of 50% is adequate for analysis and reporting; a rate of

60% is good and a response rate of 70% and over is excellent. Based on the assertion, the

response rate was considered to be excellent. 21.1% of the respondents did not return the

questionnaires. The figure 4.1 below shows the results

22

Figure 4.1: Response Rate

Source: Research data, (2015)

4.3 General information

The study sought to establish the information on the respondents employed in the study

with length of period of work at Water Bottling Companies, duration the organization has

been in operation and the position of the respondents. These bio data point at the

respondents’ appropriateness in answering the questions.

4.3.1 Duration the organization has been operation

As pertaining to the duration the organization has been in operation, 80% of respondents

indicated their organization has been in operation for less than 10 years, while 20%

indicated more than 20 years. This shows the age of the organization. This also shows

whether the organization has adopted the supply chain planning practices. The figure 4.2

below shows the results after analysis

23

Figure 4.2: Duration the organization has been operation

Source: Research data, (2015)

4.3.2 Position of the respondent

The study requested the respondent to indicate their positions, from the findings it was

established that, 66.7% of the respondents were assistant supply chain manager, 20% of

the respondent indicated their position was supply officer, 13.3% of the respondents

indicated they were supply chain manager. This indicates that the respondents were well

conversant with supply chain planning practices. The figure 4.3 below presents the results

Figure 4.3: Position of the respondent

Source: Research data, (2015)

24

4.3.3 Length of service in the organization

When asked the duration of time they had worked at Water Bottling Companies in

Nairobi, 53.3% of all respondents reported to have worked for less than 5 years, 20% of

the respondents had worked for 5 to 10 years, while the remaining 26.7% had worked for

a period of 11 to 15 years. This is the product of the Water Bottling Companies culture of

attracting and retaining the best and hence the extensive experience resource, internal

capabilities, the Water Bottling Companies enjoy in building its competitiveness hence

improved performance. The figure 4.4 below presents the results

Figure 4.4 Length of Service in the Organization

Source: Research data, (2015)

4.4 Reliability analysis

4.4.1 Cronbach’s Coefficient Alpha

The reliability of the measurements was evaluated by Cronbach alpha coefficient

(Sekaran, 2005). The results are presented in the table 4.1 below. Different scholars have

used different Cronbach Alpha coefficients cut-off points (Nunnally 1978; Hair et al.,

1998). The reliability results exceeded the 0.7 level of acceptability and were therefore

considered reliable for further analysis (Hair et al., 1998). Hair, Money, Samouel and

Page (2007) postulate that alpha coefficient below 0.6 represent poor strength of

association among data instrument. The Cronbach’s Alpha coefficient was 0.884. George

25

and Mallery (2003), states that at least a value of 0.7 is recommendable and therefore the

instrument was accepted as highly reliable.

Table 4.1: Reliability Statistics

Cronbach's

Alpha

N of Items

.884 50

Source: Research data, (2015)

4.5 Supply chain planning practices

On a scale of 1 to 5, where (1) very small extent (2) small extent (3) moderate extent (4)

large extent (5) very large extent, the respondents were asked to indicate the extent they

agree with the statements on the supply chain planning practices. The scores of very

small extentand small extent have been taken to represent a variable which had a mean

score of 0 to 2.5 on the continuous Likert scale; (0≤ S.E<2.4). The scores of moderate

extent have been taken to represent a variable with a mean score of 2.5 to 3.4 on the

continuous Likert scale (2.5≤M.E<3.4) and the score of both large extent and very large

extent have been taken to represent a variable with a mean score of 3.5 to 5.0 on the

continuous Likert scale; (3.5≤L.E<5.0).

A standard deviation of >0.9 implies a significant difference on the supply chain planning

practices of the variable among the respondents. The table 4.4 below summarizes the

mean scores of the variables of supply chain planning practices.

The findings shows that the integration with suppliers is adopted to a moderate extent as

indicated by the composite (m=3.45, std dev=0.908). This shows that the company

integrates with suppliers so that the sharing of information is enhanced. The finding

concurs with the literature review in that according to Ehie and Sheu (2005) posit that

integration enables enhanced sharing of information from buyers and suppliers. This

helps the organization to plan its future actions and satisfy the demand at a minimum

26

cost. Integration with suppliers is part of the supply chain planning whereby companies

work with suppliers seeking mutual objectives, sharing ideas, information, knowledge,

risks, rewards and solutions to common problems.

The study findings after analysis shows that the practices under integration with suppliers

to a large extent includes the firm has improved efficiency in supply chain management

with (m= 3.5263, std dev=.90483) and he firms has formally enhanced its communication

processes with (m=3.63, std dev=0.895). This shows that this practices adopted have

improved the performance of the organization. The other practices adopted to moderate

extent includes the firm uses integration to improve logistical efficiency with (m=3.32,

std dev=0.95), the organization has significantly reduced its communications costs with

(m=3.42, std dev=0.902) and the firm has a shared system with its suppliers with

(m=3.37, std dev=0.895).

The results after analysis shows that the demand management process is adopted to a

large extent as shown by the composite (m=3.62, std dev=0.94). This shows that the

organization has adopted these practices to foster smooth demand patterns. The finding

agrees with the literature review in that according to Soldhi (2003) indicates that demand

management process is a documented forecasting process that uses history data to

estimate the demand in future in order to plan for the future using mathematical methods.

It is concerned with balancing the customers’ requirements with the capabilities of the

supply chain. This includes forecasting demand and synchronizing it with production,

procurement, and distribution capabilities. A good demand management process can

enable a company to be more proactive to anticipated demand, and more reactive to

unanticipated demand.

The other practices adopted to a large extent includes control of the supply chain

planning with composite (m=3.56, std dev=0.945), supply chain decisions with

composite (m=3.66, std dev=0.901), strategic distribution planning with composite

(m=3.69, std dev=0.930) and strategic warehousing design with composite (m=3.76, std

27

dev=0.93). This shows that the water bottling company has adopted the control of the

supply chain planning for decision making hence improved performance. The finding

agrees with the literature review in that according to Benton, (2007), control of the supply

chain planning is precisely in the area of forward decision making where companies can

have the most impact on improving business results.

The supply chain decisions is adopted by the water bottling company to effectively plans

for the organizations hence this helps in reducing the communications costs affecting the

performance positively. The finding agrees with the literature review in that according to

Oliva and Watson (2011) the departmental heads of supply chain makes day-to-day

decisions involving the operations of the organization. This kind of decisions focus on

scheduling workloads, maintenance of equipment and meeting immediate market

demands. The strategic distribution planning is adopted by the water bottling company to

create the relationship between the supplier and customers by meeting the demand on

time this is because goods are available any time. The finding concurs with the literature

review in that according to Sodhi (2003) strategic distribution planning creates structures

for the transportation modes for direct links to stores, warehouse‐ to‐ store deliveries and

cross‐ docking operations.

The strategic warehousing is also adopted by the water bottling companies because the

objective of a logistics system is to reduce cycle times and overall inventories, lower

costs and most importantly, improve customer service. Warehousing increases the utility

value of goods by providing a means to have the right products available at the right

place in the right time. The findings concurs with the literature review in that operations

such as order consolidation, order assembly, product mixing and cross-docking that take

place within the warehouse structure also add value to the overall logistics system.

28

Table 4.2: Supply chain planning practices

Mean Std dev

Integration With Suppliers

The firm uses integration to improve logistical efficiency 3.3158 .94591

The firm has a shared system with its suppliers 3.3684 .89508

The organization has significantly reduced its communications

costs

3.4211 .90159

The firm has improved efficiency in supply chain management 3.5263 .90483

The firms has formally enhanced its communication processes 3.6316 .89508

Composite mean and std deviation 3.4526 .908498

Demand Management Process

The organization is able to manage its inventory and to provide

uninterrupted production, sales and customer-service levels at

minimum cost.

3.2632

.80568

The firm determines the parameter for safety inventory to prevent

stock outs

3.6842

1.00292

The firm is able to maintain the optimal level of demand to achieve

the desired customer levels.

3.5263

.90483

The firm is able to forecast and sense demand accurately 3.7895

1.03166

The firm maintains a proper balance between supply and demand 3.8421

.95819

Composite mean and std deviation 3.6211 .940656

Control of the Supply Chain planning

The firm adapts a better control over the planning function 3.7895

.97633

The firm applies supply chain planning education, systems and

practices that deliver visibility into the future

3.3684

.95513

The firm engages its suppliers in short term and long-term decisions 3.5263

.90483

29

Composite mean and std deviation 3.5614 .94543

Collaborative Supply Chain Planning

The firm collaborates with its suppliers in decision making process 3.4211

.83771

The firm formally involves its suppliers in planning decisions 3.6842

.88523

The firm collaborates with its suppliers in forecasting of demand

and supply

3.3684

.89508

The firm maintain a supplier relationship for improved trust 3.4737

.77233

Composite mean and std deviation 3.4868 .847588

Supply Chain Decisions

The firms practices joint planning and decision making 3.6316

.89508

The firm involves all its supply chain providers in all its decisions 3.6842 .8823

The firm involves its suppliers in long term decisions 3.6842

.94591

The firm ensures coordination of planning and supply chain

functions

3.6842

.88523

The firm’s top management makes appropriate decisions when

selecting suppliers and other key supply chain members

3.6316

.89508

Composite mean and std deviation 3.6632 .90072

Strategic Distribution Planning

The firm implements strategies that optimize distribution of goods

through collaborative relationships with carriers, suppliers and

customers.

3.6316 .95513

The firm outsources transportation to third and fourth party logistics

providers to minimize transportation costs.

3.6842

.88523

30

The firm maintains proper structures for direct links to stores,

warehouse to store deliveries and cross docking operations

3.6842

.94591

The firm’s uses its warehouses for storing, picking and sometimes

cross-docking for improved supply chain planning

3.6842

. 94591

The firms maintains a proper balance of inbound and outbound

logistics

3.7895

.91766

Composite mean and std deviation 3.6947 .929968

Strategic Warehousing Design

The firm’s warehouse is located close to the distributors 3.6842 .88523

The firm outsources the warehousing function for reduced costs. 3.6316 .95513

The firm has a strong distribution and warehousing strategy that is

critical for effective logistics management.

3.7895 .91766

The firm’s warehouse is strategically located to reduce

transportation costs.

3.9474 .97032

The firm uses automated picking systems for increased efficiency 3.7368 .93346

Composite mean and std deviation 3.7579 .93236

4.6 Challenges of implementing supply chain planning practices

On a scale of 1 to 5, where (1) strongly disagree (2) disagree (3) neither agree nor

disagree (4) agree (5) strongly agree, the respondents were asked to indicate the

challenges faced when implementing the supply chain planning practices. The scores of

strongly disagree and disagree have been taken to represent a variable which had a mean

score of 0 to 2.5 on the continuous Likert scale; (0≤ S.E<2.4). The scores of neither agree

nor disagree have been taken to represent a variable with a mean score of 2.5 to 3.4 on

the continuous Likert scale (2.5≤M.E<3.4) and the score of both agree and strongly agree

have been taken to represent a variable with a mean score of 3.5 to 5.0 on the continuous

Likert scale; (3.5≤L.E<5.0). A standard deviation of >1.0 implies a significant difference

on the challenges of the variable among the respondents.

31

The table 4.1 below summarizes the mean scores of the variables of challenges. The

challenges pointed out by the respondents who agreed includes numerous layers in the

management levels of our organization leads to duplication of duties, this negatively

affects supply planning practices with (m=3.58, std dev=0.90), failure by our top

management to commit itself towards implementation of supply practices (m=3.68, std

dev=1.00), the top management focus more on competition at the expense of

implementation of supply planning (m=3.79, std dev=0.92), inadequate resources for

implementing supply planning practices is a problem to our firm (m= 3.58, std dev=0.84)

and the organization lack effective training and proper structures for supply chain

planning (m=3.74, std dev=0.87). This indicates that numerous layers in the management

level leads to poor decisions which negatively affect the implementation of supply chain

planning practices.

Lack of top management commitment and focus on competition hinders the management

in participating and sharing the necessary information to implement supply chain

planning practices. It also shows that lack of top management support will lead to

unnecessary frustrations in work place and also, it will cause delay in operations and

ineffective decisions in water bottling companies. Inadequate resources hinder the

organization from the necessary equipment which are used in the implementation process

and lack of effective training hinders the implementation as the employees not have the

necessary resources.

The findings concurs with the literature review in that in the absence of skills, appropriate

ethics are not applied and hence become a challenge in applying the supply chain

planning techniques (Farrington et al., 2012). According to Bellmunt and Torres (2013)

lack of a shared knowledge about the supply chain planning function leads to inadequate

decision support systems and unavailable or inconsistent data due to lack of integration to

the core business systems. According to Kaipia (2008) most organizations lack adequate

knowledge regarding forecasting and planning techniques often, key decision makers

have little formal training in the areas of forecasting, inventory planning, production

32

planning, distribution planning or scheduling theory and processes. Many are simply

following past practices, which may be outdated and yield undesirable outcomes.

Table 4.3: Challenges of implementing supply chain planning practices

Mean Std dev

Poor leadership by our top management hinder effective

implementation of supply planning practices

3.4737 .96427

Numerous layers in the management levels of our organization

leads to duplication of duties, this negatively affects supply

planning practices

3.5789 .90159

Failure by our top management to commit itself towards

implementation of supply practices

3.6842 1.00292

Cultural dynamism makes supply chain planning difficult in our

firm because the management is rigid in their ways of doing

things

3.4737 .90483

The top management focus more on competition at the expense

of implementation of supply planning

3.7895 .91766

Inadequate resources for implementing supply planning

practices is a problem to our firm

3.5789 .83771

Our organization lack effective training and proper structures

for supply chain planning

3.7368 .87191

Source: Research data, (2015)

4.7 Supply chain planning practices and supply chain performance

On a scale of 1 to 5, where (1) very small extent (2) small extent (3) moderate extent (4)

large extent (5) very large extent, the respondents were asked to indicate the extent they

agree with the statements on the supply chain planning practices. The scores of very

small extent and small extent have been taken to represent a variable which had a mean

score of 0 to 2.5 on the continuous Likert scale; (0≤ S.E<2.4). The scores of moderate

extent have been taken to represent a variable with a mean score of 2.5 to 3.4 on the

33

continuous Likert scale (2.5≤M.E<3.4) and the score of both large extent and very large

extent have been taken to represent a variable with a mean score of 3.5 to 5.0 on the

continuous Likert scale; (3.5≤L.E<5.0). A standard deviation of >0.9 implies a significant

difference on the variables among the respondents. The table 4.4 below summarizes the

mean scores of the variables of supply chain performance. The improved performance is

reflected through demand management process ensures optimal stock with (m=3.60, std

dev=0.51). This shows that the firm ensures the optimal stock to meet the needs of

customers and avoids unnecessary stock.

The finding concurs with the literature review in that reducing demand variability aids in

consistent planning and reducing costs. Kaipia (2008) explains that increasing flexibility

helps the firm respond quickly to internal and external events. Most customer-driven

variability is unavoidable, but one of the goals of demand management is to eliminate

management practices that increase variability, and to introduce policies that foster

smooth demand patterns (Soldhi, 2003).

The performance is also reflected through strategic warehousing planning minimizes

transport costs with (m=3.67, std dev=0.98). This show the warehousing reduces the

transportation costs as the goods are only distributed when the order is made. The finding

concurs with the literature review in that determining the number of warehouses and

location planning requires a trade‐ off decision between inbound transportation costs,

fixed site costs, inventory costs and outbound transportation costs leading to supply chain

performance. It establishes the total number and size of warehouses and selects the site

(Oliva and Watson, 2011).

The finding after analysis also shows that strategic distribution planning reduces lead

time with (m=3.80, std dev=0.68) and strategic distribution planning has led to well

defined distribution channels with (m=3.80, std dev=.86). This shows that the firm stores

optimal stock and distributes in time when the need arises to avoid competition from

other competitors. It also indicates that suppliers supplies goods on time as they are

34

informed and there are many channels to distribute this goods and services to avoid

delays hence customer satisfaction.

The finding concurs with the literature review in that according to Kaipia, (2008)

regulating to what extent the retailer should handle the outbound logistics, and how

strategic partnerships with service providers are arranged. This enables the firm to

effectively integrate its functions and activities with its supply chain providers and thus

improve supply chain performance. Retailers use a distribution mix depending on

supplier location and product characteristics. They use their warehouses for storage and

picking, but sometimes they additionally serve for cross‐ docking (Lambert, 2006).

The findings after the analysis shows that the respondents indicated to a large extent that

supply chain decisions helps in firm delivering goods and services on time with (m=3.73,

std dev=0.96) and supply chain decisions help the firm to effectively manage its transport

system with (m=3.80, std dev=0.86). This indicates that supply chain is linked with major

customers hence the firm delivers goods on time to avoid unhealthy competition. This

also strengthens the supplier customer relationship. The finding concurs with the

literature review in that according to Oliva and Watson (2011) argues that the middle

level managers maintain proper coordination of activities between the organization and

the warehouse. This helps in reducing communication costs, inventory and transport costs

leading to supply chain performance. The departmental heads of supply chain makes day-

to-day decisions involving the operations of the organization. This kind of decisions

focus on scheduling workloads, maintenance of equipment and meeting immediate

market demands.

The results after analysis shows that collaboration in supply chain leads to on time

delivery of goods with (m=3.40, std dev=0.83) and integration with suppliers minimizes

communication costs with (m=3.80, std dev=0.77). This shows well coordination of

supply chain services improves the delivery of goods and services and communication

costs. This also shows that the information sharing between the suppliers and buyers

35

improves. The findings agrees with the literature review in that according to Baiman and

Rajan (2002) what characterizes advanced integration between buyers and suppliers is the

presence of a collaborative relationship and respect for other companies’ cultural and

organizational differences. By gaining indirect benefits, buyer and supplier may feel

encouraged to interact which, in turn, enhances the planning process and reinforces the

benefits, creating a cycle of positive interaction in the chain. This enables sharing of ideas

thus improving supply chain performance (Bellmunt and Torres, 2013).

The findings after analysis shows that the respondents agreed to moderate extent that

control of the supply chain planning helps the firm to achieve a competitive advantage

against its competitors with (m=3.33, std dev=0.72) and due to collaborations with

suppliers, the firm has no manual delivery of information with (m=3.33, std dev=0.82).

This implies that the management controls the supply chain planning to so that there is

well coordination hence better dissemination of information that leads to improved

performance.

36

Table 4.4: Supply chain planning practices and supply chain performance

Mean

Std.

Deviation

Statistic

Std.

Error Statistic

Demand management process ensures optimal stock 3.6000 .13093 .50709

Strategic warehousing planning minimizes transport costs 3.6667 .25198 .97590

Strategic distribution planning reduces lead time 3.8000 .17457 .67612

Collaboration in supply chain leads to on time delivery of

goods 3.4000 .21381 .82808

Integration with suppliers minimizes communication costs 3.8000 .20000 .77460

Supply chain decisions helps in firm delivering goods and

services on time 3.7333 .24817 .96115

Supply chain decisions help the firm to effectively manage

its transport system 3.8000 .22254 .86189

Control of the supply chain planning helps the firm to

achieve a competitive advantage against its competitors 3.3333 .18687 .72375

Strategic warehouse planning has led to increased delivery

frequencies 3.6667 .21082 .81650

Due to collaborations with suppliers, the firm has no

manual delivery of information 3.3333 .21082 .81650

Strategic distribution planning has led to well defined

distribution channels 3.8000 .22254 .86189

Source: Research data, (2015)

37

4.8 Pearson Correlation Analysis

The Karl Pearson’s coefficient of correlation (simple correlation) is a measure of the

degree of relationship between two variables and is denoted by r. Basically, a Pearson

product-moment correlation attempts to draw a line of best fit through the data of two

variables, and the Pearson correlation coefficient was conducted to examine the

relationship between variables, r, indicates how far away all these data points are to this

line of best fit (how well the data points fit this new model/line of best fit). The Pearson

correlation coefficient, r, can take a range of values from +1 to -1. A value of 0 indicates

that there is no association between the two variables.

As cited in Wong and Hiew (2005), the correlation coefficient value (r) range from 0.10

to 0.29 is considered weak, from 0.30 to 0.49 is considered medium and from 0.50 to 1.0

is considered strong. However, according to Field (2005), correlation coefficient should

not go beyond 0.8 to avoid multi co-linearity. The results show that there is high

correlation between, control of the supply chain planning and supply chain performance

with a value of 0.702, strategic warehouse and designand supply performance with a

value of 0.663 and demand management process and supply chain performance with a

value of 0.653. The correlation coefficients on the main diagonal are always 1.0, because

each variable has a perfect positive linear relationship with itself.

38

Table 4.5: Pearson Correlation Coefficients Matrix

Pearson Correlation Supply chain

Performance IS

DMP

CSCP CSCP SCD SDP SWD

Supply chain

Performance

1.000 .611

IS .611 1.000

DMP .653 .700 1.000

CSCP .702 .551 .632 1.000

CSCP .609 .633 .578 .584 1.000

SCD .526 .561 .700 .618 .514 1.000

SDP .501 .611 .534 .662 .557 .576 1.000

SWD .663 .699 .723 .678 .589 .608 .703 1.000

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Research data, (2015)

4.9 Regression Analysis

The regression analysis is concerned with the distribution of the average value of one

random variable as the other variables which need not be random are allowed to take

different values. A multivariate regression model was applied. The regression model

specifically connects the average values of y for various values of the x-variables. A

regression equation is in no way a mathematical linking two variables but serves as a

pointer to questions to be answered. Basically, the regression analysis is used in two

distinct ways; (1) as a means of considering data taking into account any other relevant

variables by adjustment of the random variable; and (2) to generate mathematical forms

to be used to predict the random variable from the other (independent) variables. The

regression model was as follows:

y = β0+ β1X1 + β2X2 + β3X3 + β4X4 +ẹ

Where:

Y= Supply chain performance

β0 = Constant Term

39

β1= Beta coefficients

X1= Integration with supplier

X 2=Demand management process

X 3= Control of the supply chain planning

X 4= Collaborative Supply Chain Planning

X 5= Supply Chain Decisions

X6=Strategic distribution planning

X7= Strategic Warehouse and Design

ε= error term

Table 4.6: Regression Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the

Estimate

1 .876a .768 .536 .713

a. Predictors: (Constant), Integration with supplier, demand management process,

control of the supply chain planning, collaborative supply chain planning, supply chain

Decisions, strategic distribution planning, strategic warehouse and design

b. Dependent Variable: supply chain Performance

Source: Research data, (2015

The model summary is presented in Table 4.4. The model summary was highly

significant (p=0.000) showing that the model was functional. The model had an R square

value of 0.768 indicating that the percentage of the dependent variable variance that was

explained by the independent variables was 76.8%. The P- value of 0.025 (Less than

0.05) implies that the model of supply chain performance is significant at the 5 per cent

significance. R is the correlation coefficient which shows the relationship between the

study variables, from the findings shown in the table above there was a strong positive

relationship between the study variables as shown by 0.876. The Standard Error of the

40

Estimate is the standard deviation of the data about the regression line, rather than about

the sample mean. This statistic is used with the correlation measure, the Pearson R. It is

used to construct a confidence interval within which the true population correlation will

fall. The computations derived from the r and the standard error of the estimate can be

used to determine how precise an estimate of the population correlation is the sample

correlation statistic.

ANOVA findings (P- value of 0.025) in Table 4.5 show that there is correlation between

the predictor’s variables and response variable. An F ratio is calculated to represent the

variance between the groups, divided by the variance within the groups. A large F ratio

indicates that there is more variability between the groups (caused by the independent

variable) than there is within each group, referred to as the error term (Pallant, 2005).

Therefore, this is an indication of a better the predictor model. A significant F test

indicates that we can reject the null hypothesis which states that the population means are

equal. The F value of 3.308 indicates that the overall regression model is significant

hence it has some explanatory value.

This indicates that there is a significant relationship between the predictor variables

integration with supplier, demand management process, control of the supply chain

planning, collaborative supply chain planning, supply chain decisions, strategic

distribution planning, strategic warehouse and designand supply chain performance. At

95 percent confidence interval i.e. P–value (p=0.00<0.05) it implies that all the

independent variables combined do influence the decisions to impact supply chain

performance.

41

Table 4.7: Analysis of variance

Model Sum of Squares df Mean Square F Sig.

1 Regression 11.789 7 1.684 3.308 .025a

Residual 3.564 7 .509

Total 15.353 14

a. Predictors: (Constant), Integration with supplier, demand management process, control

of the supply chain planning, collaborative supply chain planning, supply chain Decisions,

strategic distribution planning, strategic warehouse and design

b. Dependent Variable: supply chain Performance

Source: Research data, (2015)

Table 4.8: Coefficients

Un-standardized

Coefficients

Standardized

Coefficients

Model

B

Std. Error Beta t Sig.

1(Constant)

Integration with supplier

Demand management process

Control of the supply chain

planning

Collaborative supply chain

planning

Supply chain decisions

Strategic distribution planning

Strategic warehouse and design

.187

.329

.340

.230

.325

.345

.279

.303

.319

.100

.014

.086

.060

.123

.234

.235

.183

.257

.217

.119

.303

.263

.323

.112

4.29

2.857

2.379

2.123

2.835

1.318

2.051

.447

.023

.025

.037

.049

.023

.032

.043

a. Dependent Variable: Supply chain performance Performance

42

Source: Research data, (2015)

From the table 4.6, the established multiple linear regression equation becomes:

Y = .187 + .329 X1+ .340 X2+ .230 X3+ .325 X4+ .345 X5+ .279 X6 + .303 X7, Where:

β0 = 0.187, shows that if the level of independent variables are held at constant zero,

supply chain performance would be 0.187.

β1= 0.329, shows that one unit change in Integration with supplier would results in

0.329units increase in supply chain performance

β2= 0.340, shows that one unit change in demand management process would results in

0.340units increase in supply chain performance

β3= 0.230, shows that one unit change in control of the supply chain planning would

results in 0.230units increase in supply chain performance

β4= 0.325, shows that one unit change in collaborative supply chain planning would

results in 0.325 units increase in supply chain performance

β5= 0.345, shows that one unit change in supply chain decisions would results in 0.345

units increase in supply chain performance

β6= 0.279, shows that one unit change in strategic distribution planning would results in

0.079 units increase in supply chain performance

β7= 0.303, shows that one unit change in strategic warehouse and design would results in

0.079 units increase in supply chain performance

43

CHAPTER FIVE

SUMMARY OF THE STUDY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter finalizes the study on the relationship between supply chain planning

practices and performance of water bottling companies in Nairobi, Kenya. It presents the

summary of the findings, conclusions and recommendations of the study.

5.2 Summary of Findings and Recommendations

In the first step, supply chain planning practices most practiced by water bottling firms in

Nairobi, Kenya were identified, amongst these strategic warehousing design, strategic

distribution planning, control of the supply chain planning and collaborative supply chain

planning were highly ranked. In the second step the researcher assessed the relationship

between supply chain planning and supply chain performance. The results of the

regression analysis indicate that there is a significant relationship between supply chain

planning practices on supply chain performance.

When asked whether supply chain planning practices such as integration with suppliers

has led to reduced communication costs, most of the respondents strongly agreed at a

mean score of 3.5. At the same time enhancing the firms’ delivery performance through

supply chain planning practices such as strategic warehousing design were rated at means

score of 3.76. Further the concept of demand management process has also ensured that

the firms have optimal stock. Strategic distribution planning has also reduced lead time

at a mean score of 3.8. The firm’s delivery frequencies have increased at 3.67 while on

time delivery of goods has increased at a mean score of 3.4.

When compared to previous research on supply chain planning practices, the findings

that supply chain planning practices was significantly related to supply chain

performance is consistent with studies by (Stank et al., 2004, and Zailani and Rajagopali,

44

2005). Thus, this research reinforces the importance of supply chain planning practices in

improving supply chain performance.

5.3 Conclusion

The study concludes that supply chain performance of the water bottling firms has

improved because of supplier integration. Suppliers have the free hand to make inventory

replenishment decisions and have linked their customers with distributors to enhance

delivery and location flexibility. The respondents were affirmative that supply chain

practices had a big impact in supply chain performance. Respondents also confirmed that

challenges such as numerous layers in the management level and focus on competition

had negative impact on supply chain performance. Lack of effective training was pointed

out as the major challenge in implementation of supply chain planning practices while

focus on competition at the expense of the implementation of supply chain practices

ranked second. The study also concluded that use of demand management process

ensures optimal stock while having a strategic warehouse plan minimizes transport cost.

In addition collaboration with suppliers leads to zero manual delivery of information.

5.4 Recommendations

The study recommends that the various water bottling firms in Nairobi, Kenya adopts the

supply chain planning practices extensively as it has established the positive effect it has

on supply chain performance of an organization. This study extends the existing research

on supply chain planning practices in several ways.

First, it identifies the specific supply chain planning practices commonly adopted by

water bottling firms in Nairobi, Kenya. It further empirically tests the relationship

between the supply chain planning practices and supply chain performance. Therefore,

this study adds greater comprehensiveness of the supply chain planning practices and

enhances our understanding of the supply chain planning practices and their impact on

supply chain performance.

45

From the findings, good relationships with supply chain members including suppliers are

needed for enhanced supply chain performance just as (Moberg, Gross and Speh, 2002)

discovered on their study. Therefore organizations should strive to embrace supplier

chain planning practices as it has been shown committed relationships are the most

suitable advantages because of their inherent barriers to competition.

5.5 Limitations of the Study

The study used a sample size of 19 water bottling Nairobi, Kenya out of which 15

responded, due to the limitations of time and finances, organizational protocols and time

frame for appointments and to this end, the study recommends that future studies use a

higher sample size in order to increase the reliability of the data obtained. Secondly, the

study only focused on seven supply chain practices used by bottling companies in

Nairobi, Kenya. It recommends further studies to be carried out on other supply chain

planning practices that that may be affecting performance in the water bottling firms.

5.6 Suggestions for Further Study

The study recommends that a similar study be done on other bottling companies for

comparison on whether they have adopted the supply chain planning practices as well as

on the organizational performance as influenced by the practices.

While this study makes significant contribution to supply chain planning practices

literature, it calls for more research that is not just confined to the supply chain planning

practices of water bottling firms in Kenya but also on the factors affecting supply chain

planning practices such as organizational culture, environmental factors and other social

economic factors as this greatly affects the supply chain planning practices and

operations of an organization.

46

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50

APPENDICES

APPENDIX I: RESEARCH QUESTIONNAIRE

Section A: General Information

1. Duration that the organization has been in operation

(i). Less than 10 years [ ]

(ii) More than 10 years [ ]

2. What is your position in this organization?

a) Supply chain manager [ ]

b) Assistant supply chain manager [ ]

c) Supply chain officer [ ]

d) Other (specify)…………………….

3. How long have you been in this position?

a) Less than 5 years [ ]

b) 5 to 10 years [ ]

c) 10 to 15 years [ ]

d) Above 15 years [ ]

SECTION B: SUPPLY CHAIN PLANNING PRACTICES USED BY WATER

BOTTLING COMPANIES IN KENYA.

Please indicate the extent to which you agree with the following statements on the supply

chain planning practices used by East African Breweries Limited. The scale below will

be applicable: 1=very small extent, 2= small extent, 3= moderate extent, 4= Large extent,

5= to a very large extent.

No Statement 1 2 3 4 5

1 Integration With Suppliers

1 The firm uses integration to improve logistical efficiency

3 The firm has a shared system with its suppliers

3 The organization has significantly reduced its communications

costs.

4 The firm has improved efficiency in supply chain management

5 The firms has formally enhanced its communication processes

51

2 Demand Management Process

1 The organization is able to manage its inventory and to provide

uninterrupted production, sales and customer-service levels at

minimum cost.

3 The firm determines the parameter for safety inventory to prevent

stock outs

4 The firm is able to maintain the optimal level of demand to achieve

the desired customer levels.

5 The firm is able to forecast and sense demand accurately

6 The firm maintains a proper balance between supply and demand

3. Control of the Supply Chain planning

1. The firm adapts a better control over the planning function.

2. The firm applies supply chain planning education, systems and

practices that deliver visibility into the future

3. The firm engages its suppliers in short term and long-term decisions

4. Collaborative Supply Chain Planning

1. The firm collaborates with its suppliers in decision making process.

2. The firm formally involves its suppliers in planning decisions

3. The firm collaborates with its suppliers in forecasting of demand

and supply

4. The firm maintain a supplier relationship for improved trust

5 Supply Chain Decisions

1 The firms practices joint planning and decision making

2. The firm involves all its supply chain providers in all its decisions

3. The firm involves its suppliers in long term decisions

4. The firm ensures coordination of planning and supply chain

functions

5. The firm’s top management makes appropriate decisions when

selecting suppliers and other key supply chain members

6. Strategic Distribution Planning

52

1 The firm implements strategies that optimize distribution of goods

through collaborative relationships with carriers, suppliers and

customers.

2 The firm outsources transportation to third and fourth party logistics

providers to minimize transportation costs.

3 The firm maintains proper structures for direct links to stores,

warehouse‐to‐store deliveries and cross‐docking operations

4 The firm’s uses its warehouses for storing, picking and sometimes

cross-docking for improved supply chain planning

5 The firms maintains a proper balance of inbound and outbound

logistics

7. Strategic Warehousing Design

1 The firm’s warehouse is located close to the distributors

2 The firm outsources the warehousing function for reduced costs.

4 The firm has a strong distribution and warehousing strategy that is

critical for effective logistics management.

5 The firm’s warehouse is strategically located to reduce

transportation costs.

6 The firm uses automated picking systems for increased efficiency.

53

SECTION C: CHALLENGES OF IMPLEMENTING SUPPLY CHAIN

PLANNING PRACTICES

Please indicate the challenges faced by your organization in implementation of supply

chain planning practices. Please tick in the appropriate box using the following rating; 5

=Strongly agree, 4 = Agree, 3 = Neither agree not disagree, 2 = Disagree, 1 = Strongly

disagree

5 4 3 2 1

1. Poor leadership by our top management hinder

effective implementation of supply planning

practices

2. Numerous layers in the management levels of our

organization leads to duplication of duties, this

negatively affects supply planning practices

3. Failure by our top management to commit itself

towards implementation of supply planning

practices

4. Cultural dynamism makes supply chain planning

difficult in our firm because the management is

rigid in their ways of doing things.

5. The top management focus more on competition

at the expense of implementation of supply

planning

6. Inadequate resources for implementing supply

planning practices is a problem to our firm

7. Our organization lack effective training and

proper structures for supply chain planning

Any other; (please indicate)

_____________________________________________________________________

54

SECTION D: SUPPLY CHAIN PLANNING PRACTICES AND SUPPLY CHAIN

PERFORMANCE

Please indicate the extent to which you agree with the following statements in regard to

the relationship that exists between supply chain planning practices and supply chain

performance of water bottling companies. Use the following rating; 5 = to a very large

extent, 4 = Large extent, 3 = Moderate extent, 2 = Small extent, 1 = Very small extent

No Statement 1 2 3 4 5

1 Demand management process ensures optimal stock

2. Strategic warehousing planning minimizes transport costs

3 Strategic distribution planning reduces lead time

4. Collaboration in supply chain leads to on-time delivery of goods

5. Integration with suppliers minimizes communication costs

6. Supply chain decisions helps in firm delivering goods and services

on time

7. Supply chain decisions help the firm to effectively manage its

transport system

8. Control of the supply chain planning helps the firm to achieve a

competitive advantage against its competitors.

9. Strategic warehouse planning has led to increased delivery

frequencies.

10. Due to collaboration with suppliers, the firm has no manual

delivery of information.

11. Strategic distribution planning has led to well defined distribution

channels

Any other; (please specify)

55

APPENDIX II: LIST OF BOTTLING COMPANIES IN KENYA

S/No FIRM PRODUCT REGION

1 KEVIAN (K) LTD.

CONTAINERIZED

DRINKING

WATER/JUICES

NAIROBI

2 WORLD TRADE LTD

CONTAINERIZED

DRINKING WATER

NAIROBI

3

MILIMANI SUBTERRANEAN

SPRINGS LTD.

CONTAINERIZED

DRINKING WATER

NAIROBI

4 BOUNTY LTD

CONTAINERIZED

DRINKING WATER

NAIROBI

5

BLUE PLASTICS AND WATER

CO.LTD

CONTAINERIZED

DRINKING WATER

NAIROBI

6 MACNJERUS ENTERPRISES

CONTAINERIZED

MINERAL WATER

NAIROBI

7 GITILIGINI LTD

CONTAINERIZED SPRING

DRINKING WATER

NAIROBI

8 TWIN OAKS LIMITED

DRINKING

WATER/JUICES

NAIROBI

9 AQUALEX ENTERPRISES DRINKING WATER NAIROBI

10 NAMUSYA AGENCY DRINKING WATER NAIROBI

11 EXCEL CHEMICALS LTD

DRINKING

WATER/JUICES

NAIROBI

12 ALPINE COOLERS LIMITED DRINKING WATER NAIROBI

13 NAIROBI BOTTLERS LTD

DRINKING WATER/SOFT

DRINKS

NAIROBI

14 SARK KENYA DRINKING WATER NAIROBI

15

PREMIER WATER SOLUTIONS

LTD - ONGATA RONGAI DRINKING WATER

NAIROBI

16 STENRAC ENTERPRISES LTD DRINKING WATER NAIROBI

17 ENERGY FOODS LTD DRINKING WATER NAIROBI

18 WANDOMIST SUPPLIES DRINKING WATER NAIROBI

19 DIARIM ENTERPRISES LTD DRINKING WATER NAIROBI

20 DUTCH WATER LIMITED DRINKING WATER NAIROBI

56

21 AQUAMIST LTD [MSA] DRINKING WATER NAIROBI

22 NATURES KENYA LTD DRINKING WATER NAIROBI

23 ALL SEASONS SERVICES CO. DRINKING WATER NAIROBI

24 PENROSE ENTERPRISES DRINKING WATER NAIROBI

25 GRACIOUS PURE WATER DRINKING WATER NAIROBI

26

TOTAL QUALITY COMPANY

LTD. DRINKING WATER

NAIROBI

27 AGRI PRO-PAK LTD DRINKING WATER NAIROBI

28 MARA PURE DRINKING WATER DRINKING WATER NAIROBI

29

WATER INTERNATIONAL (K)

LTD DRINKING WATER

NAIROBI

30 EARNEST ENTERPRISES DRINKING WATER NAIROBI

31 BLUE WAVE COMPANY LTD DRINKING WATER NAIROBI

32 PRISTINE INTERNATIONAL LTD DRINKING WATER NAIROBI

33 WAHELAY LIMITED DRINKING WATER NAIROBI

34 RAYAN PURE WATER DRINKING WATER NAIROBI

35 MILELE SPRINGS DRINKING WATER NAIROBI

36 CREST FOODS LIMITED DRINKING WATER NAIROBI

37 JOHARI FARM LTD DRINKING WATER NAIROBI

38 TOSHEKA GENERAL STORES DRINKING WATER NAIROBI

39

FAHARI GARDENS COMPANY

LIMITED DRINKING WATER

NAIROBI

40

CWAY KENYA FOODS AND

BEVERAGES CO. LTD DRINKING WATER

NAIROBI

41 SHACHAH LIMITED DRINKING WATER NAIROBI

42 LIFE LINE CO. LTD DRINKING WATER NAIROBI

43 CRYSTAL ROCK LIMITED DRINKING WATER NAIROBI

44

CRYSTAL COOL PURE SPRINGS

WATER DRINKING WATER

NAIROBI

45

ANCHOR FLOUR MILLERS CO

LTD DRINKING WATER

NAIROBI

46 SIMPLE LIFE TRADING CO. LTD DRINKING WATER NAIROBI

57

47 KENZE ENTERPRISES LIMITED DRINKING WATER NAIROBI

48 LOKICHOGIO SPRINGS DRINKING WATER NAIROBI

49 MANANE FOODS ENTERPRISES DRINKING WATER NAIROBI

50 KAY SEVEN GROUP DRINKING WATER NAIROBI

51 SPARKLETTS FRESH DRINKING WATER NAIROBI

52 SLOANSQUARE LTD DRINKING WATER NAIROBI

53 STENLOIW ENTERPRISES DRINKING WATER NAIROBI

54 KALIMONI GREENS DRINKING WATER NAIROBI

55 GARAI TRADERS COMPANY DRINKING WATER NAIROBI

56

EASYMART SUPERMARKET LTD

- ENTERPRISE RD DRINKING WATER

NAIROBI

57 FULL WAYS COMPANY LTD DRINKING WATER NAIROBI

58 ABSOPURE WATER COMPANY DRINKING WATER NAIROBI

59

SIMBA SPRINGS ENTERPRISES

LTD DRINKING WATER

NAIROBI

60

GICHOYA DEVELOPMENT CO.

LTD DRINKING WATER

NAIROBI

61

ROLINKEMS MERCHANTS E.A

LIMITED DRINKING WATER

NAIROBI

62 ROOF ARTS LTD DRINKING WATER NAIROBI

63 LIMURU COOL INVESTMENT DRINKING WATER NAIROBI

64 JOINDA ENTERPRISES DRINKING WATER NAIROBI

65 FAMILY HOPE SERVICES LTD DRINKING WATER NAIROBI

66 THARA ORCHARDS DRINKING WATER NAIROBI

67

FRENCY GENERAL SUPPLIES

LTD DRINKING WATER

NAIROBI

68 RUNDA WATER LTD DRINKING WATER NAIROBI

69 FLOMA GENERAL SUPPLIERS DRINKING WATER NAIROBI

70 GOLDEN FLAMES LIMITED DRINKING WATER NAIROBI

71 SPECIAL GATEWAY DRINKING WATER NAIROBI

72 BARIHA ENTERPRISE DRINKING WATER NAIROBI

73 YATTA FOODS COMPANY DRINKING WATER NAIROBI

58

LIMITED

74 FRESH AQUA ENTERPRISES DRINKING WATER NAIROBI

75 TSUBIS GLOBAL INVESTMENTS DRINKING WATER NAIROBI

76 DOUBLE LUCK VENTURES DRINKING WATER NAIROBI

77 BRIMA PURE DRINKING WATER DRINKING WATER NAIROBI

78 NICE SPRING WATER DRINKING WATER NAIROBI

79 ELITE COMMERCIAL INSTITUTE DRINKING WATER NAIROBI

80 RUSAM LIMITED DRINKING WATER NAIROBI

81 LAWNY SPRING ENTERPRISES DRINKING WATER NAIROBI

82 AFROGREAT ENTERPRISES LTD DRINKING WATER NAIROBI

83

HAKI ENGINEERING

CONSULTANTS DRINKING WATER

NAIROBI

84

PREMIER WATER SOLUTIONS (T-

MALL) DRINKING WATER

NAIROBI

85

AQUA DUE SPRINGS

ENTERPRISES DRINKING WATER

NAIROBI

86

FOUNTAIN SPRINGS

ENTERPRISES DRINKING WATER

NAIROBI

87 BAALLESONS E.A. CO. LTD DRINKING WATER NAIROBI

88 ADONEZA GENERAL SUPPLIES DRINKING WATER NAIROBI

89 DENCO SERVICES LTD DRINKING WATER NAIROBI

90 EMAHO ENTERPRISES DRINKING WATER NAIROBI

91 AQUA CHILL COMPANY LTD DRINKING WATER NAIROBI

92

HARSHIN DRILLING AND

SPARES ENTERPRISE DRINKING WATER

NAIROBI

93 KIJABE SPRINGS DRINKING WATER NAIROBI

94 MWAFAKA FOODS INDUSTRIES DRINKING WATER NAIROBI

95 WATAHAUZ ENTERPRISES LTD DRINKING WATER NAIROBI

96 KENIQ LIMITED DRINKING WATER NAIROBI

97 TRU-FIELD VENTURES DRINKING WATER NAIROBI

98

WELLS VALLEY INVESTMENTS

LTD DRINKING WATER

NAIROBI

59

99 DASANIA GENERAL SUPPLIES DRINKING WATER NAIROBI

100 SOUTH SEAS FOOD LIMITED DRINKING WATER NAIROBI

101 KILIMANARO MIST BEVERAGES DRINKING WATER NAIROBI

102 ICONIC DELIGHTS LTD DRINKING WATER NAIROBI

103 AQUA NICE ENTERPRISES DRINKING WATER NAIROBI

104 NOOSUYIAN WATER COMPANY DRINKING WATER NAIROBI

105 ADVENT CONTRACTORS LTD DRINKING WATER NAIROBI

106

KEEN METAL FABRICATORS

LTD DRINKING WATER

NAIROBI

107 ELITE LODGIT LIMITED DRINKING WATER NAIROBI

108 NATURE INSPIRE DRINKING WATER NAIROBI

109

COMLINES DISTRIBUTORS

LIMITED DRINKING WATER

NAIROBI

110 BRIDGEMEAD LIMITED DRINKING WATER NAIROBI

111

THREE SPRINGS PREMIUM

WATER DRINKING WATER

NAIROBI

112 QUALITY MARKETERS DRINKING WATER NAIROBI

113 ASILI PLASTICS LIMITED DRINKING WATER NAIROBI

114 SILVER ICE PURE WATER DRINKING WATER NAIROBI

115 EUBRINE INVESTMENT DRINKING WATER NAIROBI

116 SKY DROP COMPANY LIMITED DRINKING WATER NAIROBI

117

TROPICA GENERAL

MERCHANTS DRINKING WATER

NAIROBI

118 EBONY FOODS LTD DRINKING WATER NAIROBI

119 SUNNY RIVER LTD DRINKING WATER NAIROBI

120 FESTIG LTD DRINKING WATER NAIROBI

121 INTERIOR BEVERAGES LTD DRINKING WATER NAIROBI

122 MODEST ENTERPRISES DRINKING WATER NAIROBI

122 CLEAR QUEST SPRINGS DRINKING WATER NAIROBI

123

KLAN EAST AFRICA COMPANY

LTD DRINKING WATER

NAIROBI

124 JEDEN COMPANY LTD DRINKING WATER NAIROBI

60

125 OLBOLSATT COMPANY LTD DRINKING WATER NAIROBI

126 DESIRE KRYSTAL WATER DRINKING WATER NAIROBI

127 SHIVA MOMBASA LIMITED DRINKING WATER NAIROBI

128 BETHEL WATER SERVICES DRINKING WATER NAIROBI

129 RIVER OAKS ENTERPRISES DRINKING WATER NAIROBI

130 AMMOR EA ENTERPRISES DRINKING WATER NAIROBI

131 CROMBIC TOURS DRINKING WATER NAIROBI

132 THE ZOROS COMPANY LTD DRINKING WATER NAIROBI

133 MAJI STORE DRINKING WATER NAIROBI

134 KITHOMES LTD DRINKING WATER NAIROBI

135 AQUAFIN DRINKING WATER NAIROBI

136 RAINBOW SPRINGS DRINKING WATER NAIROBI

137 ASTRIDE ENTERPRISES LTD DRINKING WATER NAIROBI

138 SHELTER LINE PROPERTIES DRINKING WATER NAIROBI

139

TELLYNE ENTERPRISES

LIMITED DRINKING WATER

NAIROBI

140

PREMIER WATER SOLUTIONS

(EMBAKASI)

DRINKING WATER

(EMBAKASI)

NAIROBI

141 ELDOVILLE FARM LTD DRINKING YOGHURT NAIROBI

142

GRANGE PARK/USAFI SERVICES

LTD

FLAVOURED MINERAL

WATER

NAIROBI

143 WAFO FOODS FLAVOURED WATER NAIROBI

144 JOSMIS SUPPLIERS MINERAL WATER NAIROBI

145

KRYSTALINE MINERAL WATER

COMPANY MINERAL WATER

NAIROBI

146 BETTER CHOICE LTD MINERAL WATER NAIROBI

147

BINGWA MILLERS AND FOOD

PROCESSORS MINERAL WATER

NAIROBI

148

SUNSHINE MINERAL WATER

ENTERPRISES MINERAL WATER

NAIROBI

149 DANMAR ENTERPRISES MINERAL WATER NAIROBI

150 MARGEO ENTERPRISES MINERAL WATER NAIROBI

61

151 ADRIAN WATER SYSTEMS LTD MINERAL WATER NAIROBI

152 SAFARIMATE MINERAL WATER MINERAL WATER NAIROBI

153

KILIMANJARO BOTTLED WATER

LTD MINERAL WATER

NAIROBI

154 MADA HOLDINGS LTD MINERAL WATER NAIROBI

155 ULIVETO SPRINGS MINERAL WATER NAIROBI

156 FRESAM AGENCIES LTD MINERAL WATER NAIROBI

157 CLEBE ENTERPRISES MINERAL WATER NAIROBI

158 JENTAR INVESTMENTS LTD MINERAL WATER NAIROBI

159 LIMU BLOMEN ENTERPRISES MINERAL WATER NAIROBI

160 MLIMANI SPRINGS MINERAL WATER

NAIROBI

161 DAINLE GENERAL AGENCIES MINERAL WATER NAIROBI

162 MAKIS SPRINGS MINERAL WATER NAIROBI

163 NATURES HARVEST WATER MINERAL WATER NAIROBI

164 SPRINGS OF MBOONI HILLS MINERAL WATER NAIROBI

165 MORNING DEW TRAVEL LTD MINERAL WATER NAIROBI

166 PALAMAT CHEMICALS MINERAL WATER NAIROBI

167 WATERMAX FARM CO. LTD MINERAL WATER NAIROBI

169 AQUAMAX TRADERS MINERAL WATER NAIROBI

169 UNIVERSAL AQUA LTD MINERAL WATER NAIROBI

170

GUAMA MILLERS AND

MANUFACTURERS LTD MINERAL WATER

NAIROBI

171 NATURE ONE ENTERPRISES LTD MINERAL WATER NAIROBI

172 KIJABE SUPER SPRINGS MINERAL WATER NAIROBI

173

CLASSIC SPRING MINERAL

WATER CO.LTD MINERAL WATER

NAIROBI

174

NYERI WATER AND SEWERAGE

CO. LTD

MUNICIPAL DRINKING

WATER

NAIROBI

175 AQUAMIST LIMITED

SPARKLING MINERAL

WATER

NAIROBI

176 CIANDA SPRINGS SPRING MINERAL NAIROBI

62

WATER

177 KENMAL ENTERPRISES

SPRING MINERAL

WATER

NAIROBI

178 KOBA WATERS LTD.

SPRING MINERAL

WATER

NAIROBI

179

BARANIKI INVESTMENTS (K)

LTD

SPRING MINERAL

WATER

NAIROBI

180 TULASHA ENTERPRISES

SPRING MINERAL

WATER

NAIROBI

181 SANGRASS AGENCIES

SPRING MINERAL

WATER

NAIROBI

182 ENJABE ENTERPRISES

SPRING MINERAL

WATER

NAIROBI

183

MOUNTAIN ROCK PURE

DRINKING WATER LTD

SPRING MINERAL

WATER

NAIROBI

184 MONTANA LIMITED

SPRING MINERAL

WATER

NAIROBI

185 ICON FOUNTAIN SPRINGS

SPRING MINERAL

WATER

NAIROBI

186 FARRIS ENTERPRISES SPRING WATER NAIROBI

Source: (Kenya Bureau of Standards; March, 2015)